From the outside, becoming an entrepreneur can seem so simple: Take a good idea, create a business around it and rake in profit. Reality isn’t as kind, however. Projects are constantly evolving, requiring regular hard work and deep thought to stay ahead, and not everything works out the way you might imagine. This means that anyone looking to become an entrepreneur needs to be well informed about what they’re getting into before jumping into an industry.
To that end, we asked 14 entrepreneurs from YEC to share the key considerations they believe people need to take into account before taking the plunge and becoming a business owner. Here’s what they said:
1. Uncertainty and Massive Risk
Most folks are aware of the risks of starting up their own business, especially with such a high percentage of businesses failing. Yet the concept of uncertainty is not discussed as often. As an entrepreneur, for the first 12 months (if you’re lucky), you may not know where or when your next paycheck is coming. It’s important to secure financial stability in some form.
– Nick Eubanks, From The Future
2. Passion Over Currency
You’ve got to be really passionate on whatever industry or business you get into. Because if you’re not, you will end up quitting. Working to achieve certain amount of money is good and all, but your passion needs to outweigh it. Entrepreneurship is not for the weak minded. You will face adversities, struggle and failure. Now if you’re passionate and enjoy what you do, you will succeed eventually. – Fritz Colcol, ABN Circle
3. Who Are You?
An entrepreneur recently asked me, when should I take the plunge? My response: Well, who are you? Are you the boss? The leader? The don’t-take-no-for-an-answer, I’ll-do-whatever-it-takes, unequivocal dictator? If that feeling is in your blood, then go start a company now. If that idea doesn’t fire you up, you’ll always fight your play-it-safe identity. Which one resonates more with you?
– Peter Kozodoy, GEM Advertising
4. Know What You Want
All entrepreneurs work extremely hard. My day starts at 4 a.m. because I don’t want to compromise and lose focus on my family and my health. After a full day of work, I still want to make time for the kids, read and put them to bed before getting back on emails. There are a lot of days when you question your choices so without a strong reason to do it, it is easy to give up!
– Amishi Takalkar, NAILBITER
5. Endurance
You need to be willing to persist, even though it might take a long time before you start seeing a profit. Making a new business profitable takes time, money and lots of endurance.
6. Downside, Upside and Fixed Costs
Before taking the plunge, you will want to consider the downside of potentially not making money right away. The upside is easy to consider, as that is what’s speaking to you in the first place. You also want to weigh your fixed expenses and your obligations that will need to be met so you can calculate how much you need to generate to get by.
– Joel Mathew, Fortress Consulting
7. Your Parenting Skills
Becoming an entrepreneur is something like becoming a parent. When you create something that will require a lot of investment and you can’t quit on it even in bad times. If you want your business baby to grow up into a valuable, contributing member of society, then you’ll have to use all your resources to give it the best means to succeed. And of course, a good partner can make all the difference.
– Zev Herman, Superior Lighting
8. Tolerance for Failure and Change
Entrepreneurs often have to pivot or know when something isn’t working in order to make that change or give up on an idea. You need to consider if you have the ability to do that as well as handle the possibility for failure and keep going. It’s important to be resilient and not let barriers get to you. If you can learn from failure, then you have the fortitude to be an entrepreneur.
9. How Soon You Expect to Make Money
It’s important to have a clear business plan for yourself on the action steps that you need to take to start making money and grow your business. Create cash-flow projections, marketing plans and everything you would present to an investor. Many entrepreneurs think that if they don’t have investors, they don’t need a business plan. Don’t fall into this trap. You’re an investor too.
10. Setting Your Pride Aside
Don’t be swept away by the sexy titles like “Founder” or other titles that start with the letter “C.” Being an entrepreneur means being the janitor, the outside salesperson, the tax accountant, the roofer and (sometimes!) the exterminator. Your hands will get dirty and you will do unsexy work that’s far outside your comfort zone. Consider carefully if you’re up for the task.
11. How Much Time It Takes
It doesn’t matter what business you want to start, it’s going to take time. Probably a lot more time than your worst estimate. Getting clients doesn’t come easy even with a well-laid-out marketing plan (hopefully you have one). So be prepared to dig in, to follow through, to work at it hard and then even harder. Don’t get discouraged; perseverance is key!
– Nicolas Gremion, Free-eBooks.net
12. Support Levels
Those entrepreneurs I know as well as myself all have asked ourselves if everyone close to us is supportive and on-board. You need to have them there to help and support you or it won’t work. They don’t have to work in the business per se, but they must be willing to ride out the ups and downs and take on extra to make it happen.
13. What You Are Willing to Risk
If you aren’t willing to make major sacrifices — including financial security, seeing friends, free nights and weekends, low stress — then being an entrepreneur is not for you. However, one can’t fully understand the extent of these sacrifices until they start and experience the first signs of suffering, but you’ll quickly understand, and then the question becomes: “How badly do you want this?”
– Sam Miller, Boston Biomotion
14. Product and Market Fit
Before making any investment of your resources into a product or service, you have to objectively ask yourself: “Does this product or service solve a genuine problem for an existing segment of a reachable marketplace?” With a sober weighing of the product and market fit question, you’re more likely to select the more fruitful diving spots in the entrepreneurial pool.